Ethanol-Blended Fuel: Vehicle Damaged? Nitin Gadkari Addresses Concerns And Compensation

Union Minister for Road Transport and Highways, Nitin Jairam Gadkari, has clarified that government-backed studies show no significant performance issues or component damage from using 20% ethanol-blended petrol (E20). In a written response in Parliament, he also confirmed that no compensation fund for E20-related damage is under consideration, even as concerns continue to be raised by vehicle owners and lawmakers.

The clarification came after MP Derek O'Brien sought detailed data on complaints related to E20, including instances of engine damage, mileage loss, warranty refusal and insurance denial. He also asked whether a manufacturer- and insurer-wise breakdown of such cases existed, and whether the government would establish a compensation mechanism.

Gadkari pointed to a comprehensive note issued by the Ministry of Petroleum and Natural Gas on Aug. 4, addressing the impact of E20. Citing studies conducted by Indian Oil Corporation (IOCL), the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Research Association of India (ARAI), he said vehicles tested on E20 “have not shown any significant variations in performance” and “no adverse impact on components is observed.”

He emphasised the environmental and performance benefits of ethanol. Ethanol produces lower greenhouse gas emissions compared to petrol, and its higher-octane rating enhances anti-knock qualities. With E20 delivering an effective RON 95, the blend supports improved combustion and performance in compatible engines.

On the commonly raised issue of mileage loss, Gadkari noted that fuel efficiency depends on several factors beyond fuel composition. Driving style, vehicle maintenance, tyre pressure, wheel alignment and air-conditioning usage all play major roles, he said. Test parameters such as drivability, startability and metal compatibility have also shown no issues during evaluation.

Addressing concerns about older vehicles, Gadkari clarified that vehicles sold before April 1, 2023 were designed for E10, while vehicles sold after that date are E20 material compliant. While this does not bar older vehicles from using E20, it does mean they were not originally engineered for higher ethanol content.